The arbitral tribunal in Paris defeated the bulk of Cargill's claims, including US$ 152 (it was: 125 ) million compensation that the American company demanded from Poland.
Cargill, Incorporated submitted its claim to arbitration under the Poland-US Bilateral Investment Treaty (BIT) in April 2004. Cargill's dispute with the Polish government arose in connection with Cargill's investments in facilities near the city of Wrocław for production of a wheat-based sweetener known as isoglucose. According to Cargill Poland's implementation of EU-mandated quotas on isoglucose allegedly breached the BIT. The company demanded US$152 million in compensation as well as costs and fees of arbitration proceedings (added).
The tribunal rejected the major portion of Cargill's claim and limited the award of compensation to one-tenth of the amount claimed. Poland's implementation of EU-mandated quotas on isoglucose accounted for almost all of the damages awarded to Cargill ( i.e. , 85%, or US$14.4 million). Poland argued successfully to limit the damages attributable to its implementation of national quotas prior to EU accession to US$1.9 million. Totally the tribunal awarded only US$16,3 million out of US$152 million plus interest claimed by the American investor. (it was: Poland successfully defeated the bulk of Cargill's claims. The tribunal reduced Cargill's demands and awarded compensation for Poland's implementation of EU quota levels on isoglucose of US$12,5 million. The tribunal also limited the damages attributable to the implementation of national quotas prior to EU accession to US$1.9 million. Totally the tribunal awarded only US$14,4 million out of US$152 million plus interest claimed by the American investor. ).
The arbitral tribunal also rejected Cargill's claim for nearly US$4 million in costs and fees.
In March 2008, the arbitral tribunal released its decision in Cargill, Incorporated v. Republic of Poland . An agreement on confidentiality of the proceedings prevented dissemination of information about the tribunal's final award until now.